Aussie e-commerce player RooLife Group has been appointed as distributor for China and Australia for Fiji Kava (ASX:FIJ) – a global beverage and natural medicine company who’s range includes relaxant and sleep aid capsules, drinking kava, dietary shots and new ready to drink ‘RTD’ products.
It’s kind of a big deal, with the global health and wellness market projected to reach US$12.8 billion by 2031.
RooLife Group (ASX:RLG) will provide digital marketing, social media and e-commerce operations in both countries and will co-market the Fiji Kava powdered drinking kava range alongside its VORA protein range in the lucrative online sports nutrition channel where more than 80% of sales take place by eCommerce.
Chinese market demand growing
With removal of China’s COVID restrictions, this is a further example of the uplift in demand that RLG is experiencing for health and wellbeing products and from brands seeking to access this market, with this sector expected to significantly contribute to increased revenue to be generated from this region for the company.
And the market is already opening, with this deal following in the footsteps of the company’s stocking and distribution deal for Remedy Drinks – an Aussie Kombucha brand – into Alibaba’s 300 high-tech Freshippo supermarkets and stores (and official app) in China last month.
“RooLife has a proven track record in China with Remedy Kombucha, so we are confident that they can grow an Australian brand through Chinese eCommerce channels and then transition to bricks and mortar retail in the world’s largest consumer market,” Fiji Kava CEO Anthony Noble said.
Plus, RLG CEO Bryan Carr said it’s a natural alignment with the company’s health and wellbeing positioning and digital marketing and e-commerce capabilities in the two key markets for both companies of Australia and China and “fits perfectly with our VORA health product range.”
“We look forward to a long and mutually successful partnership,” he added.
Performance rights for sales targets
Under the terms of the agreement RLG will generate fees for the provision of digital marketing, social media and e- commerce store operation and receive a margin on all products it sells.
And as further incentive for sales performance, the company has been granted performance rights to achieve retail sales of up to $500k by 30 June 2025, $1-2m by 30 June 2026, up to $5-10m by 30 June 2027 and up to $15m by 30 June 2028 – with a minimum of $9m in China over a period of five years.
The initial term of the agreement is 2 years with periodic marketing investment reviews at which marketing spend, which is funded by Fiji Kava, may be increased or the parties may elect to cease activities.
This article was developed in collaboration with RooLife Group Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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